FORM
8-K
|
FiberMark,
Inc.
|
Delaware
|
001-12865
|
82-0429330
|
(State
or other jurisdiction of incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
FiberMark
|
||
Date:
November 16, 2005
|
By:
|
/s/
John E. Hanley
|
John
E. Hanley
|
||
Vice
President and Chief Financial Officer
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Exhibit
No.
|
|
Description
|
|
||
Exhibit
99.1
|
|
Press
release dated November 14, 2005
|
FOR IMMEDIATE RELEASE |
Contact:
|
Janice C. Warren |
Director, Investor Relations and Corporate Communications | ||
802 257 5981 |
Condensed
Consolidated Statements of Operations
Three
Months Ended September 30, 2005 and 2004
(In
thousands, except per share amounts)
Unaudited
|
|||||||
2005
|
2004
|
||||||
Net
sales
|
$
|
106,979
|
$
|
107,748
|
|||
Cost
of sales
|
93,949
|
93,289
|
|||||
Gross
profit
|
13,030
|
14,459
|
|||||
Selling,
general and administrative expenses
|
9,117
|
10,037
|
|||||
Restructuring
and facility closure expense (reversal)
|
11,446
|
(209
|
)
|
||||
Gain
on disposal of assets
|
(317
|
)
|
-
|
||||
Asset
impairment charge
|
46,557
|
-
|
|||||
Income
(loss) from operations
|
(53,773
|
)
|
4,631
|
||||
Foreign
exchange transaction gain
|
(292
|
)
|
(211
|
)
|
|||
Other
(income) expense, net
|
(209
|
)
|
225
|
||||
Interest
expense, net (excluding post-petition contractual interest of $8,525
in
both 2005 and 2004)
|
327
|
549
|
|||||
Reorganization
expense
|
4,098
|
6,477
|
|||||
Loss
before income taxes
|
(57,697
|
)
|
(2,409
|
)
|
|||
Income
tax expense
|
1,940
|
2,248
|
|||||
Net
loss
|
$
|
(59,637
|
)
|
$
|
(4,657
|
)
|
|
Basic
loss per share
|
$
|
(8.44
|
)
|
$
|
(0.66
|
)
|
|
Diluted
loss per share
|
$
|
(8.44
|
)
|
$
|
(0.66
|
)
|
|
Weighted
average basic shares outstanding
|
7,066
|
7,066
|
|||||
Weighted
average diluted shares outstanding
|
7,066
|
7,066
|
Condensed
Consolidated Statements of Operations
Nine
Months Ended September 30, 2005 and 2004
(In
thousands, except per share amounts)
Unaudited
|
|||||||
2005
|
2004
|
||||||
Net
sales
|
$
|
337,337
|
$
|
331,187
|
|||
Cost
of sales
|
289,481
|
277,263
|
|||||
Gross
profit
|
47,856
|
53,924
|
|||||
Selling,
general and administrative expenses
|
31,451
|
33,983
|
|||||
Restructuring
and facility closure expense (reversal)
|
11,540
|
(209
|
)
|
||||
Gain
on disposal of assets
|
(2,222
|
)
|
-
|
||||
Asset
impairment charge
|
46,557
|
-
|
|||||
Income
(loss) from operations
|
(39,470
|
)
|
20,150
|
||||
Foreign
exchange transaction gain
|
(144
|
)
|
(482
|
)
|
|||
Other
expense, net
|
376
|
1,159
|
|||||
Interest
expense, net (excluding post-petition contractual interest of $25,575
and
$17,142
in 2005 and 2004, respectively)
|
1,435
|
10,159
|
|||||
Reorganization
expense
|
12,733
|
20,419
|
|||||
Loss
before income taxes
|
(53,870
|
)
|
(11,105
|
)
|
|||
Income
tax expense
|
9,472
|
9,812
|
|||||
Net
loss
|
$
|
(63,342
|
)
|
$
|
(20,917
|
)
|
|
Basic
loss per share
|
$
|
(8.96
|
)
|
$
|
(2.96
|
)
|
|
Diluted
loss per share
|
$
|
(8.96
|
)
|
$
|
(2.96
|
)
|
|
Weighted
average basic shares outstanding
|
7,066
|
7,066
|
|||||
Weighted
average diluted shares outstanding
|
7,066
|
7,066
|
Condensed
Consolidated Balance Sheets
(In
thousands, except share and per share amounts)
Unaudited
|
|||||||
|
September
30,
2005
|
December
31,
2004
|
|||||
ASSETS
|
|||||||
Current
assets:
|
|||||||
Cash
|
$
|
13,624
|
$
|
1,194
|
|||
Accounts
receivable, net of allowances
|
62,301
|
61,116
|
|||||
Inventories
|
68,570
|
73,650
|
|||||
Prepaid
expenses
|
3,964
|
4,339
|
|||||
Total
current assets
|
148,459
|
140,299
|
|||||
Property,
plant and equipment, net
|
173,844
|
248,853
|
|||||
Goodwill
|
8,253
|
9,167
|
|||||
Other
intangible assets, net
|
3,007
|
2,629
|
|||||
Other
long-term assets
|
5,718
|
4,858
|
|||||
Total
assets
|
$
|
339,281
|
$
|
405,806
|
|||
LIABILITIES
AND STOCKHOLDERS’ DEFICIT
|
|||||||
Current
liabilities:
|
|||||||
Revolving
credit line
|
$
|
5,613
|
$
|
2,628
|
|||
Accounts
payable
|
24,447
|
24,063
|
|||||
Accrued
liabilities
|
27,138
|
21,269
|
|||||
Accrued
income taxes payable
|
18,802
|
15,458
|
|||||
Deferred
income taxes
|
247
|
279
|
|||||
Total
current liabilities not subject to compromise
|
76,247
|
63,697
|
|||||
Long-term
liabilities:
|
|||||||
Deferred
income taxes
|
17,786
|
28,497
|
|||||
Other
long-term liabilities
|
47,208
|
48,788
|
|||||
Total
long-term liabilities not subject to compromise
|
64,994
|
77,285
|
|||||
Liabilities
subject to compromise
|
366,573
|
366,700
|
|||||
Total
liabilities
|
507,814
|
507,682
|
|||||
Stockholders’
deficit:
|
|||||||
Preferred
stock, par value $.001 per share; 2,000,000
shares authorized, and none issued
|
- | - | |||||
Series
A Junior participatory preferred stock, par value $.001;
7,066
shares authorized, and none issued
|
- | - | |||||
Common
stock, par value $.001 per share; 20,000,000 shares authorized
7,070,026
shares issued
and 7,066,226 shares outstanding in 2005 and 2004 |
7
|
7
|
|||||
Additional
paid-in capital
|
65,496
|
65,496
|
|||||
Accumulated
deficit
|
(238,050
|
)
|
(174,708
|
)
|
|||
Accumulated
other comprehensive income
|
4,049
|
7,364
|
|||||
Less
treasury stock, 3,800 shares at cost in 2005 and 2004
|
(35
|
)
|
(35
|
)
|
|||
Total
stockholders’ deficit
|
(168,533
|
)
|
(101,876
|
)
|
|||
Total
liabilities and stockholders’ deficit
|
$
|
339,281
|
$
|
405,806
|
FiberMark,
Inc.
|
|||||||||||||
Supplemental
Financial Information
|
|||||||||||||
Reconciliation
of Net Loss to EBITDAR
|
|||||||||||||
EBITDAR,
a non-GAAP measure, is defined as earnings before, interest, taxes,
depreciation, amortization and chapter 11-related reorganization
expenses.
This financial metric reflects liquidity and operating profitability
commonly used by the investment community and internally for evaluation
purposes. Such measures should be considered in addition to, but
not in
lieu of, financial measures reported under GAAP.
|
|||||||||||||
|
Three
Months Ended September 30,
|
Variance
|
|||||||||||
2005
|
2004
|
$
|
%
|
||||||||||
Net
loss
|
(59,637
|
)
|
(4,657
|
)
|
(54,980
|
)
|
-1181
|
%
|
|||||
Adjustments
to reconcile to EBITDAR:
|
|||||||||||||
Income
tax expense
|
1,940
|
2,248
|
308
|
||||||||||
Net
interest expense
|
327
|
549
|
222
|
||||||||||
Chapter
11 reorganization expense
|
4,098
|
6,477
|
2,379
|
||||||||||
Depreciation
and amortization
|
4,702
|
4,356
|
(346
|
)
|
|||||||||
11,067
|
13,630
|
2,563
|
19
|
%
|
|||||||||
EBITDAR1
|
(48,570
|
)
|
8,973
|
(57,543
|
)
|
-641
|
%
|
||||||
1Includes:
|
|||||||||||||
Asset
impairment charge
|
46,557
|
-
|
(46,557
|
)
|
|||||||||
Restructuring
and facility closure expense (reversal)
|
11,446
|
(209
|
)
|
(11,655
|
)
|
||||||||
Gain
on disposal of assets
|
(317
|
)
|
-
|
317
|
|||||||||
Foreign
exchange gain
|
(292
|
)
|
(211
|
)
|
81
|
||||||||
57,394
|
(420
|
)
|
(57,814
|
)
|
|||||||||
|
Nine
Months Ended September 30,
|
Variance
|
|||||||||||
2005
|
2004
|
$
|
%
|
||||||||||
Net
loss
|
(63,342
|
)
|
(20,917
|
)
|
(42,425
|
)
|
-203
|
%
|
|||||
Adjustments
to reconcile to EBITDAR:
|
|||||||||||||
Income
tax expense
|
9,472
|
9,812
|
340
|
||||||||||
Net
interest expense
|
1,435
|
10,159
|
8,724
|
||||||||||
Chapter
11 reorganization expense
|
12,733
|
20,419
|
7,686
|
||||||||||
Depreciation
and amortization
|
14,968
|
13,234
|
(1,734
|
)
|
|||||||||
38,608
|
53,624
|
15,016
|
28
|
%
|
|||||||||
EBITDAR1
|
(24,734
|
)
|
32,707
|
(57,441
|
)
|
-176
|
%
|
||||||
1Includes:
|
|||||||||||||
Asset
impairment charge
|
46,557
|
-
|
(46,557
|
)
|
|||||||||
Restructuring
and facility closure expense (reversal)
|
11,540
|
(209
|
)
|
(11,749
|
)
|
||||||||
Gain
on disposal of assets
|
(2,222
|
)
|
-
|
2,222
|
|||||||||
Foreign
exchange gain
|
(144
|
)
|
(482
|
)
|
(338
|
)
|
|||||||
55,731
|
(691
|
)
|
(56,422
|
)
|